Dodgy Estate Agent?

Concerned.

I have just discovered from my tenant, who left on good terms after many years one month ago, that the Estate Agent that we used organise holding the deposit has not paid her the deposit and is un-contactable.

She quite rightly wants her deposit back, but what am I to do?

The sister branches of the same estate agent say they are trying to sort it, but this has been going on for weeks and the head office/accounts section does not answer messages.

The company that they say holds their deposit protection has no record of having ever held their deposit.

Is this illegal?
Should I contact the police?

BitterAndTwisted

What are you to do? Check all of the deposit-protection schemes which were in operation at the time the tenancy started (DPS, TDS and MyDeposits) and if you can't find it registered with any of them then YOU return the tenant's money to them, and chase up the agent yourself. After all, they are your agent and not the tenant's, so if they haven't protected the deposit and the tenant is minded, they could apply to the court and request a penalty of THREE TIMES the deposit-value be imposed on you.

Once you have secured the return of the tenant's deposit to you, sack them

hamster2013

as stated above - it is your responsibility as the landlord to ensure the deposit is protected.
I would immediately refund the deposit otherwise the tenant could get legal path and you could be sued up to three times the deposit - then it would be up to you to claim that from the estate agent.

maninthestreet

Dodgy Estate/letting agent? That's bad luck - a chance in a million.

vectistim

Just one thing - this tenant has been in place for 'many years' - possibly before mandatory deposit protection, my understanding is that in such a case (as long as it's stayed statutory periodic) it still does not need to be lodged.

See final sentence under 'Who is protected'
http://www.depositprotection.com/legislation

tim123456789

vectistim wrote: »

Just one thing - this tenant has been in place for 'many years' - possibly before mandatory deposit protection, my understanding is that in such a case (as long as it's stayed statutory periodic) it still does not need to be lodged.

See final sentence under 'Who is protected'
http://www.depositprotection.com/legislation

Nope

that changed with the new rules from 2012

vectistim

tim123456789 wrote: »

Nope

that changed with the new rules from 2012

Do you have a link to support that?

BitterAndTwisted

It's the Localism Act 2012. I'm sure you can find your own links now as I cba

vectistim

Thank you, here's the Localism Act then.
http://www.legislation.gov.uk/ukpga/2011/20/pdfs/ukpga_20110020_en.pdf
Section 184 (p.205) is the relevant bit. Whilst it lists amendments to the 2004 Housing Act as far as I can tell it does not include any amendment to bring within the 2004 Housing Act deposits from before 2007.
In my earlier link the DPS say it still isn't necessary.
The RLA http://www.rla.org.uk/landlord/tenancy_deposits/tds-FAQ.shtml#11 says it isn't compulsory

Concerned.

I should explain that the estate agent did initially put the money into a protection scheme when they came in but it turns out that they then removed it from that scheme in 2011.

I have found this out from the letter that my tenant received at the time from the old protection scheme.

I am aware of my responsibilities, I am looking for advice as to how to get on the case of the estate agent!

BitterAndTwisted

Start by writing a letter to the branch with a copy to the MD at Head Office asking for an explanation about why the deposit was withdrawn from the scheme in 2011 without you having been informed.

And then you tell them that it needs to be returned to you in 7 days as you have now refunded the tenant yourself.

Have they found you a replacement tenant for this property since your old tenant has left?